Infiniti Stops Joint Model Development With Daimler, Says Report

Nissan has opted against developing a number of Infiniti luxury cars with Mercedes-Benz, according to a report published by Reuters.

The company originally intended on using Daimler’s MFA2 car platform in future Infiniti models but has decided against it despite jointly funding the platform’s creation alongside Daimler.

Sources close to Infiniti claim that the company wouldn’t have been able to absorb the necessary Mercedes-Benz technology costs of using MFA2 due to its small presence in the market.

This decision could hamper production at the $1 billion factory being opened by the two companies in Aguascalientes, Mexico later this year. The brands had intended on reducing complexity and cutting production costs by using the same compact car architecture.

What’s more, Nissan had invested $306 million at its UK plant to equip it with Mercedes-Benz tooling.

Nevertheless, it is reported that the two automakers are pushing forward with construction at their joint Mexican plant where models bound for the United States will be produced. This is also despite the fact that President-elect Donald Trump is promising to apply tariffs to vehicles built in Mexico and imported into the U.S.

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